Miami - The world’s largest cruise liner company Carnival Corporation is about to shed 13 ships from its fleet though demolition and sales deals as it works on cutting maintenance costs and curbing the impact of the COVID-19 pandemic on its business.
Carnival like many of its counterparts from the cruise industry sector suspended sailings in March due to traveling restrictions across the globe aimed at minimizing the spread of the virus. The company has reached agreements to dispose of nine ships, which were previously expected to be sold over the coming years.
Furthermore, speaking at a conference call on Friday, July 10, Carnival’s President and Chief Executive Officer Arnold Donald said that the company is negotiating the delay in delivery of 16 ships on order as part of its efforts of reducing capex in the upcoming period: “We expect to reduce ship deliveries through the end of fiscal 2021 from nine as originally planned down to five; two this fiscal year and three next, deferring over $3 billion of capital expenditures into fiscal 2022 and beyond. So reduced our cash burn and have a more efficient fleet once we do resumed cruising, we have aggressively shared less efficient ships. A total of 13 ships are expected to leave the fleet, representing a nearly 9% reduction in our current capacity,” he said.(READ MORE)